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Average Sales Price (ASP) charts the change in the average initial price of new subscriptions over time.
If you’re interested in analyzing the average MRR for current subscribers, see Average Revenue Per Account.
Average Sale Price (ASP) charts the change in average New Business MRR and is an early indicator of whether customer lifetime value (LTV) is likely to increase or decrease.
What insights can I gain with Average Sale Price?
Average Sale Price is useful for measuring efforts to increase the average deal size of new subscribers and provides an early indication of whether customer lifetime value (LTV) is likely to increase or decrease in the future.
ASP is also a useful financial metric for assessing sales team performance, identifying which regions to spend advertising budget, and defining pricing strategy.
- ChartMogul classifies the MRR from a customer’s first subscription as New Business. Subsequent increases (or decreases) to the subscription’s MRR (e.g., as the result of an upgrade) are not included in the calculation of this metric. Learn more about MRR movements.
- Only recurring invoice line items contribute to this chart. Non-recurring items such as setup fees don’t contribute to this chart.
ChartMogul calculates Average Sales Price as total New Business MRR in a given period divided by the number of customers who subscribed for the first time in that period.
For example, you acquire ten new customers in May. Three purchase a Gold Plan for $100 and seven purchase a Silver Plan for $50. Your Average Sale Price is $65.
See Chart Data.
- See which region or industry has the highest value deals with segmentation.
- Track the total expected subscription revenue over the lifetime of an average subscriber with Customer Lifetime Value.
- Read our blog post on Using ASP to benchmark your SaaS sales team.